Duty exemption aims to boost domestic electronics manufacturing under the PLI scheme.
Key Highlights
- The Centre has waived basic customs duty on key electronic components.
- The exemption has been extended until March 31, 2029.
- The move is aimed at strengthening domestic manufacturing under the PLI scheme.
- Components used in smartphones, laptops, smart TVs, smartwatches and wireless chargers will benefit.
- The exemption has come into effect immediately.
- Consumer electronics, EVs, automotive, medical devices and industrial equipment sectors are expected to gain.
News Story
New Delhi: The Central Government has exempted basic customs duty on several electronic components used in manufacturing a wide range of consumer and industrial electronic products, in a move aimed at boosting domestic production under the Production Linked Incentive (PLI) Scheme.
The duty exemption, which has come into effect immediately, will remain valid until March 31, 2029, providing long-term support to manufacturers that rely on imported components for production.
The exemption covers components used in products such as smartphones, laptops, smart TVs, smartwatches, wireless chargers, fitness bands, display modules and lithium-ion battery systems.
The government said the decision is intended to strengthen India’s electronics manufacturing ecosystem by reducing input costs for companies that still depend on imported components while expanding domestic production under the Make in India and Atmanirbhar Bharat initiatives.
Industry experts believe the measure will improve the competitiveness of Indian manufacturers and encourage greater investment in advanced electronics manufacturing. While the move may not immediately reduce retail prices of electronic products, lower production costs could help manufacturers offer more affordable products over time.
The biggest beneficiaries are expected to be companies operating in consumer electronics, electric mobility, industrial equipment, automotive components and medical devices, particularly those manufacturing products domestically under the PLI scheme.
Launched in 2020, the Production Linked Incentive (PLI) Scheme offers financial incentives to companies that increase domestic manufacturing and expand production capacity across key sectors.
